Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: pilot_light who wrote (67374)	5/31/2000 1:10:00 PM
From: Big Dog	Read Replies (2) \| Respond to of 95453

From SSB * SURVEY AND ANALYSIS OF WORLDWIDE OIL & GAS EXPLORATION AND PRODUCTION EXPENDITURES: MIDYEAR UPDATE * The 326 companies we surveyed are planning on a 18.2% increase in their worldwide E&P expenditures for 2000, versus a 10.2% rise for 2000 budgeted in December * U.S. E&P expenditures are budgeted to advance by 17.6% in 2000, compared with a 15.9% gain in 2000 in our December 1999 survey. The greater increase is almost entirely driven by independents. In our survey, 227 independents indicated E&P spending growth in 2000 of 26.1% versus a 22.9% increase budgeted for 2000 in December 1999. The 14 majors, however, are budgeting a similar gain for gain for 2000 as they were in December up 8.8% versus an increase an increase of 8.4%. * Canadian E&P expenditures are estimated to rise by a staggering 44.7% in 2000 by the 85 companies surveyed, compared with a 28.0% gain indicated for 2000 in our December 1999 survey. * International E&P expenditures are also slated to rise by significantly more than estimated six months ago with 99 companies budgeting a 14.9% rise compared with a 5.7% increase in December. The budgets are based on an average oil price expectation of $22.04 (West Texas Intermediate) and a natural gas price of $2.58 per mcf (Henry Hub). Theses are well below current prices and Lehman Brothers estimates of $28 per barrel and $3.30 per mcf respectively. Budgets are being underspent year-to-date in all areas -- particularly internationally. * A substantial majority of companies are planning increases in E&P spending in 2001 in the U.S., in Canada and internationally. *The result support our positive investment stance on the stocks of oilfield service and drilling companies. Stocks we would purchase at the current time include Grant Prideco, Tidewater, Weatherford International, Key Energy Services, Global Marine, Rowan Companies, BJ Services, Santa Fe International, Carbo Ceramics, ENSCO, Noble Drilling, Nabors Industries and Halliburton. A DETAILED REPORT WILL BE AVAILABLE TOMORROW